Open Intelligence Says: No Free Lunch

Open Intelligence says: NO FREE LUNCH –

Completely frictionless trading with Bitcoin looks increasingly unlikely. The Mt Gox ‘bug’ has already cost Bitcoin users a lot of money. In the not too distant future, one of the costs will be paying for insurance against losses. Indeed Bitcoin insurance could become a hot business opportunity and the beginning of a secondary Bitcoin derivatives market. ‘Plus ca change …‘*

Citations:

[1] Though Normand suggests his opinion differs, he did indicate it was possible to view the events at Mt. Gox in a positive light for bitcoin, saying:

“The optimistic view of these events is that a two-tier market in a virtual currency is more benign than one in fiat currencies because it reflects operational risks around a particular exchange rather than those surrounding an entire sovereign and its financial system.”
Still, Normand suggested that he believes the events are proof virtual currencies will require intermediaries, and therefore not be able to deliver the sweeping cost savings they currently provide in the absence of such financial networks in the future.”
http://www.coindesk.com/new-jpmorgan-report-bitcoin-mt-gox-problem/

[2] In most businesses, a small coding error is a minor problem. With Bitcoin, an online “cryptocurrency”, a fairly simple flaw seems to have cost $5.3 billion. That is how much the value of all of the Bitcoin in the world has fallen over the past two weeks, after a bug caused several Bitcoin exchanges to halt withdrawals temporarily.

**Get started with Bitcoin at Coinbase.**

http://www.businessinsider.com/cryptocurrencies-the-great-hiccup-2014-2?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+TheMoneyGame+%28The+Money+Game%29

Open Intelligence offers tips on the media and trends in the Bitcoin economy. Check back often to find out what is happening.

*The more things change, the more they stay the same.